PARTNER COMMUNICATIONS CO LTD | CIK:0001096691 | 3

  • Filed: 3/29/2018
  • Entity registrant name: PARTNER COMMUNICATIONS CO LTD (CIK: 0001096691)
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  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1096691/000117891318001012/0001178913-18-001012-index.htm
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  • ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory

    NOTE 5 – SEGMENT INFORMATION

       
    New Israeli Shekels
     
       
    Year ended December 31, 2017*
     
       
    In millions
     
       
    Cellular segment
       
    Fixed-line segment
       
    Elimination
       
    Consolidated
     
    Segment revenue - Services
       
    1,960
         
    622
               
    2,582
     
    Inter-segment revenue - Services
       
    18
         
    155
         
    (173
    )
           
    Segment revenue - Equipment
       
    610
         
    76
                 
    686
     
    Total revenues
       
    2,588
         
    853
         
    (173
    )
       
    3,268
     
                                     
    Segment cost of revenues - Services
       
    1,470
         
    613
                 
    2,083
     
    Inter-segment cost of  revenues- Services
       
    154
         
    19
         
    (173
    )
           
    Segment cost of revenues - Equipment
       
    490
         
    54
                 
    544
     
    Cost of revenues
       
    2,114
         
    686
         
    (173
    )
       
    2,627
     
    Gross profit
       
    474
         
    167
                 
    641
     
                                     
    Operating expenses (3)
       
    367
         
    98
                 
    465
     
    Income with respect to settlement agreement with Orange
       
    108
                         
    108
     
    Other income, net
       
    29
         
    2
                 
    31
     
    Operating profit
       
    244
         
    71
                 
    315
     
    Adjustments to presentation of segment
                                   
        Adjusted EBITDA
                                   
         –Depreciation and amortization
       
    445
         
    135
                     
         –Other (1)
       
    21
         
    1
                     
    Segment Adjusted EBITDA (2)
       
    710
         
    207
                     

       
    New Israeli Shekels
     
       
    Year ended
    December 31,
    2017*
     
       
    In millions
     
    Reconciliation of segments subtotal Adjusted EBITDA to profit for the year
         
    Segments subtotal Adjusted EBITDA (2)
       
    917
     
    Depreciation and amortization
       
    (580
    )
    Finance costs, net
       
    (180
    )
    Income tax expenses
       
    (21
    )
    Other (1)
       
    (22
    )
    Profit for the year
       
    114
     
     
    * See Notes 2(n), 2(f)(5) regarding the early adoption of IFRS15, Revenue from Contracts with Customers. In 2017 costs of obtaining contracts with customers were capitalized in amounts of NIS 64 million and NIS 20 million for the cellular segment and the fixed-line segment, respectively. The adoption of IFRS15 resulted in an increase in amortization expenses in 2017 for the cellular segment and the fixed-line segment in amounts of NIS 11 million and NIS 2 million, respectively.

       
    New Israeli Shekels
     
       
    Year ended December 31, 2016
     
       
    In millions
     
       
    Cellular segment
       
    Fixed-line segment
       
    Elimination
       
    Consolidated
     
    Segment revenue - Services
       
    2,080
         
    672
               
    2,752
     
    Inter-segment revenue - Services
       
    19
         
    194
         
    (213
    )
           
    Segment revenue - Equipment
       
    729
         
    63
                 
    792
     
    Total revenues
       
    2,828
         
    929
         
    (213
    )
       
    3,544
     
                                     
    Segment cost of revenues - Services
       
    1,659
         
    617
                 
    2,276
     
    Inter-segment cost of  revenues- Services
       
    192
         
    21
         
    (213
    )
           
    Segment cost of revenues - Equipment
       
    596
         
    52
                 
    648
     
    Cost of revenues
       
    2,447
         
    690
         
    (213
    )
       
    2,924
     
    Gross profit
       
    381
         
    239
                 
    620
     
                                     
    Operating expenses (3)
       
    571
         
    118
                 
    689
     
    Income with respect to settlement agreement with Orange
       
    217
                         
    217
     
    Other income, net
       
    41
         
    4
                 
    45
     
    Operating profit
       
    68
         
    125
                 
    193
     
    Adjustments to presentation of segment
                                   
        Adjusted EBITDA
                                   
         –Depreciation and amortization
       
    447
         
    148
                     
         –Other (1)
       
    47
         
    (1
    )
                   
    Segment Adjusted EBITDA (2)
       
    562
         
    272
                     
     
       
    New Israeli Shekels
     
       
    Year ended
    December 31, 2016
     
       
    In millions
     
    Reconciliation of segments subtotal Adjusted EBITDA to profit for the year
         
    Segments subtotal Adjusted EBITDA (2)
       
    834
     
    Depreciation and amortization
       
    (595
    )
    Other (1)
       
    (46
    )
    Finance costs, net
       
    (105
    )
    Income tax expenses
       
    (36
    )
    Profit for the year
       
    52
     
     
     
       
    New Israeli Shekels
     
       
    Year ended December 31, 2015
     
       
    In millions
     
       
    Cellular segment
       
    Fixed-line segment
       
    Elimination
       
    Consolidated
     
    Segment revenue - Services
       
    2,275
         
    717
               
    2,992
     
    Inter-segment revenue - Services
       
    22
         
    189
         
    (211
    )
           
    Segment revenue - Equipment
       
    1,051
         
    68
                 
    1,119
     
    Total revenues
       
    3,348
         
    974
         
    (211
    )
       
    4,111
     
                                     
    Segment cost of revenues - Services
       
    1,856
         
    736
    (*) 
               
    2,592
     
    Inter-segment cost of  revenues- Services
       
    187
         
    24
         
    (211
    )
           
    Segment cost of revenues - Equipment
       
    832
         
    48
                 
    880
     
    Cost of revenues
       
    2,875
         
    808
         
    (211
    )
       
    3,472
     
    Gross profit
       
    473
         
    166
                 
    639
     
                                     
    Operating expenses (3)
       
    506
         
    134
    (*) 
               
    640
     
    Income with respect to settlement agreement with Orange
       
    61
                         
    61
     
    Other income, net
       
    44
         
    3
                 
    47
     
    Operating profit
       
    72
         
    35
                 
    107
     
    Adjustments to presentation of segment
                                   
       Adjusted EBITDA
                                   
         –Depreciation and amortization
                                   
           (including impairment charges, see note 13)
       
    510
         
    243
                     
        –Other (1)
       
    15
         
    1
                     
    Segment Adjusted EBITDA (2)
       
    597
         
    279
                     
     
       
    New Israeli Shekels
     
       
    Year ended
    December 31, 2015
     
       
    In millions
     
    Reconciliation of segments subtotal Adjusted EBITDA to loss for the year
         
    Segments subtotal Adjusted EBITDA (2)
       
    876
     
    Depreciation and amortization (including impairment charges, see note 13)
       
    (753
    )
    Other (1)
       
    (16
    )
    Finance costs, net
       
    (143
    )
    Income tax expenses
       
    (4
    )
    Loss for the year
       
    (40
    )
     
    (*) Includes impairment charges in the fixed line segment, see note 13.

    (1)
    Mainly amortization of employee share based compensation.
     
    (2)
    Adjusted EBITDA as reviewed by the CODM represents Earnings Before Interest (finance costs, net), Taxes, Depreciation and Amortization (including amortization of intangible assets, deferred expenses-right of use and impairment charges) and Other expenses (mainly amortization of share based compensation). Adjusted EBITDA is not a financial measure under IFRS and may not be comparable to other similarly titled measures for other companies. Adjusted EBITDA may not be indicative of the Group's historic operating results nor is it meant to be predictive of potential future results. The usage of the term "Adjusted EBITDA" is to highlight the fact that the Amortization includes amortization of deferred expenses – right of use and amortization of employee share based compensation and impairment charges; it is fully comparable to EBITDA information which has been previously provided for prior periods.
     
    (3)
    Operating expenses include selling and marketing expenses and general and administrative expenses.